Table.Briefing: Europe (English)

Puigdemont’s provocation + Meloni’s constitutional reform + CSRD

Dear reader,

After almost seven years in exile in Belgium, Carles Puigdemont from the separatist Junts party wants to return to Spain. This is a risky move, as the separatist leader faces arrest if he enters the country. Puigdemont was elected regional president of Catalonia in 2016. He initiated a referendum and then proclaimed independence from Spain. He was later deposed by the Senate and then sentenced to many years in prison for “sedition”. At the time, he had avoided arrest by fleeing to Central Europe.

But Puigdemont’s return is calculated. It coincides with the day on which the socialist Salvador Illa is to be elected regional president in the regional parliament. With the votes of another separatist party called ERC. This is part of the political deal that saw the socialist Pedro Sánchez become Prime Minister again. In return, Sánchez promised amnesty for leaders of the separatist movement. However, a decision by the Supreme Court put a spanner in the works and dashed the hopes of Puigdemont and other supporters for impunity.

The exciting question now is: will Puigdemont be arrested? If so, the ERC could refrain from electing Illa. There is a lot at stake: Sánchez, who wants to end the era of separatist regional presidents in Catalonia by electing Illa, had garnished the deal with the promise to give the region the right to collect taxes independently. He is therefore prepared to relinquish the financial sovereignty of the central state. However, the controversial project could fail today, just like Illa.

No matter where you are watching the political spectacle from – I hope you get through the day safely!

Your
Isabel Cuesta Camacho
Image of Isabel  Cuesta Camacho

Feature

Italy: What Meloni wants to achieve with the constitutional reform

As soon as the EU Commission’s report on the rule of law was published at the end of July, the first fake news stories started doing the rounds: Brussels rejected Italy’s constitutional reform, among other things. “The report revives all the fears that we have repeatedly expressed about the negative effects of the direct election of the head of government”, writes Dario Parrini, senator of the Partito Democratico, on his Facebook page, for example.

The constitutional reform, Prime Minister Giorgia Meloni’s major project, is only lightly touched on in the Commission’s report: Some interest groups have expressed concerns about the proposed changes to the current system of institutional power-sharing, it says. Some doubt that these would lead to more stability.

Direct elections would be a first in the EU

It is also stated as a fact: With this reform, it would no longer be possible for the President of the Republic to form alternative majorities. He would also no longer be able to appoint experts as heads of government. This sums up in a nutshell what Meloni is all about: with the “mother of all reforms”, as she calls her plan, Italy’s prime ministers are to be elected directly by the people in the future. A first in the European Union.

In Italy, the two chambers of parliament are elected every five years at the latest. The President of the Republic then appoints a person of his choice to form the government and appoints the ministers in consultation with this person. The opposition sees the planned constitutional amendment as a definitive authoritarian turn – initiated by Giorgia Meloni, the leader of the right-wing nationalist Fratelli d’Italia, a successor organization to the MSI, in which the henchmen of dictator Mussolini were active after the Second World War.

Majority bonus off the table

The direct election of the head of government would severely restrict the power of the president – who is considered by many to be the guarantor of the constitution, a political anchor and a reliable figure. This may have something to do with the current incumbent: Sergio Mattarella has been steering every political chaos into reasonably orderly channels for nine years. Almost 60 percent of Italians trust Mattarella. Giorgia Meloni is in second place in the vote of confidence with 35%.

Some particularly controversial points from Meloni’s original text have already been removed, such as a majority bonus that would have automatically secured the winner at least 55% of the seats in both chambers of parliament. This figure at least is now off the table, but the possibility of run-off elections is now being discussed. A new feature of the current text is a limit of two terms in office.

Are all plans practicable?

The aim of Meloni’s reform is to make Italy’s governments more stable and stop the constant changes. And the most important thing: The person leading the government should have been clearly chosen by the people for precisely this task. These approaches are certainly justified. Meloni’s government is number 68 in the past 75 years. The average term of office for Italian governments is 18 months.

Meloni is also the first Italian head of government since Berlusconi to explicitly apply for – and win – the post of prime minister during the election campaign. Her predecessors Mario Monti, Enrico Letta, Matteo Renzi, Paolo Gentiloni, Giuseppe Conte and Mario Draghi all got the job without having applied to the people for this office beforehand.

In the event of a government crisis, the President would only be able to hand over the reins of government to someone else once per parliamentary term. This other person must be an elected member of parliament from the majority alliance of the originally elected prime minister. They must adhere to the prime minister’s program. This is where the question of practicality arises.

Referendum could decide on reform

However, it is not certain whether the constitution will be amended at all. In June, the current draft passed the first hurdle and was approved by the Senate. A constitutional amendment must pass through each of the two chambers of parliament twice and ultimately be approved by a two-thirds majority. If these figures do not materialize – which is likely – the people will have to be asked. Such a referendum could be held in spring 2025, halfway through the current legislature.

A delicate point. Because approval for Meloni’s constitutional reform is not particularly high. In a survey conducted at the end of June, only 29% of respondents said they were in favor of electing the prime minister directly in the future. In 2016, Prime Minister Matteo Renzi, then still the shining light of the Partito Democratico, fell over his plans to reform the constitution. He also wanted to strengthen the office of prime minister.

With a new electoral law, the party alliance that wins more than 40 percent in an election or a subsequent run-off election would automatically be awarded the majority of parliamentary seats, according to the plans of the left at the time. “Renzi wants to make himself a dictator inconspicuously“, said opponents of the plan at the time. The referendum failed and Renzi resigned. Meloni has already announced that he will not do so if her referendum also fails.

Translation missing.Translation missing.

News

Traffic and buildings: Why the German government is getting sued again

Environmental Action Germany (DUH) has filed another climate lawsuit against the German government at the Berlin-Brandenburg Higher Administrative Court – this time based on EU regulations and concerning emissions from the transport, buildings and land use sectors. Citing the EU Effort Sharing Regulation and the LULUCF Regulation, the organization requests in its statement of claim that the court should oblige the German government to submit a plan with “additional actions” that are sufficient to reduce these emissions in accordance with EU regulations. DUH also calls for “immediate measures such as a speed limit, a refurbishment campaign for public buildings and a massive reduction in forest logging.”

All EU member states are required to jointly reduce their emissions in the so-called ESR sectors of transport, buildings, small industry, waste, and agriculture by 40 percent by 2030 compared to the 2005 level. Germany’s contribution is to halve its emissions. If Germany remains on its current course, it will “miss the target by a landslide,” according to DUH, “particularly due to the massively excessive emissions in the transport and buildings sectors.” DUH criticizes the fact that no other EU member state is doing so poorly. In its latest greenhouse gas projection report, the German Environment Agency estimates the extent to which the target will be missed by 2030 at 126 million tons of CO2 equivalents.

Germany faces billions in fines

If Germany fails to meet the ESR targets, it must purchase carbon credits from other EU member states by 2030 to compensate. According to the DUH, this could mean payments “in the double-digit billion range.” In addition, EU emissions trading will also be introduced for the transport and building sectors from 2027 (ETS 2).

In the land use sector (LULUCF), EU law obliges Germany to meet clear targets for the storage of carbon dioxide in ecosystems such as forests or peatlands. Here, too, DUH sees “insufficient corrective measures to date” and is taking legal action. The organization has currently filed several lawsuits at various levels against the German government in an attempt to force it to adopt a more ambitious climate policy. Legal action has been filed before the European Court of Human Rights and the Federal Constitutional Court. ae

  • Building sector
  • Climate & Environment
  • Climate complaints
  • EU climate policy
  • EU-Klimapolitik
  • Landwirtschaft

CSRD: Commission publishes FAQ for companies

The EU Commission wants to support companies in implementing the Sustainability Reporting Directive (CSRD). It has therefore published a compilation of frequently asked questions (FAQs). Finance Commissioner Mairead McGuinness explained that the clarifications are intended to reduce the need for companies to seek external advice or legal counsel.

In addition to an overview of the sustainability reporting requirements, the document contains answers from the Commission to frequently asked questions on the following topics:

  • on the sustainability information to be reported under the Accounting Directive,
  • on ensuring sustainability reporting,
  • on requirements for companies in third countries,
  • and on connection with the EU Disclosure Regulation (SFDR).

Questions on the scope of application, deadlines and exceptions are answered for each topic, among other things. For example, when companies are allowed to use estimates instead of collecting information about the value chain from suppliers or partners. According to the Commission, questions from companies were taken into account in the compilation.

The CSRD came into force in January 2023. The first group of companies must start reporting for the 2024 financial year in 2025. leo

  • Nachhaltigkeitsberichterstattung

Mercosur: Why new appointments make diplomats optimistic

European Union and South American negotiators will meet on Sept. 4-6 in Brasilia in the first in-person talks since April, raising hopes an EU-Mercosur trade deal can be concluded this year, diplomats said. In the works for two decades, an agreement has been delayed by European concerns over environmental safeguards and complaints by the Mercosur trade bloc that those questions are motivated by protectionism.

“We are traveling to Brasilia for an in-person round of negotiations 4-6 September,” a European diplomat said. “The end-of-year timetable for conclusion is realistic,” he said. Brazil and Uruguay both confirmed the dates of the meeting. Uruguay’s foreign ministry said that the negotiating process “continues firmly” and that technical work has carried on “uninterrupted” between both sides.

“There is interest from Mercosur in closing this agreement,” a Uruguayan foreign ministry spokesperson told Reuters on Wednesday. Foreign ministry representatives in Argentina and Paraguay did not immediately respond to Reuters’ request for comment.

The talks suffered a blow in March when French President Emmanuel Macron called it a “very bad deal” on a visit to Brazil, voicing the opposition of French farmers. Negotiations were put on hold until after the EU’s parliamentary elections in June.

Many conflicts not yet resolved

Diplomats said the issues on the table remain the same, including European protection of food product names and Brazilian opposition to an EU anti-deforestation law due to go into effect next year that could affects its exports. French, German and Belgian farmers have protested against competition from cheaper South American imports. EU Commission President Ursula von der Leyen and Brazilian President Luiz Inacio Lula da Silva had committed themselves to concluding the agreement by the end of the year.

At this stage, the EU is the main driver of the fresh push to finish the deal, which will open up markets for European companies, said international relations scholar Ignacio Bartesaghi at Uruguay’s Catholic University.

Bartesaghi also said “Brazil wants to give a sense of continuity to the negotiations” due to fears that Argentina’s President Javier Milei would pull out, though his government has supported the talks since taking office. rtr

  • Mercosur

Must-Reads

Opinion

Strong together in Europe: green hydrogen for climate and industry

By Katherina Reiche, Marcel Galjee, Tom Hautekiet
Tom Hautekiet, Katherina Reiche and Marcel Galjee advise the governments in Belgium, Germany and the Netherlands on the development of the hydrogen economy.

The European Union is facing an immense challenge: it must achieve its ambitious climate targets and at the same time strengthen the competitiveness of its industry and technologies. We can only achieve these goals with the massive use of green hydrogen. But the necessary framework conditions are still lacking.

Decisive political decisions are therefore needed now. For Germany, the Netherlands and Belgium in particular, the right steps must be taken urgently to meet the high demand and ensure a sufficient and affordable supply of green hydrogen.

Germany, the Netherlands and Belgium together form an important economic region in the heart of Europe. It accounts for 30 percent of European industrial production and 40 percent of hydrogen consumption. Its industries such as steel, chemicals, process heat, electricity and transportation are expected to be the main consumers of green hydrogen.

Action plan for Europe’s import hub

With the North Sea as a center for green hydrogen production, a dense gas pipeline network and globally important ports, these countries are ideally positioned to become Europe’s import hub for green hydrogen. Despite these opportunities, the development of a market for liquid green hydrogen remains a major challenge.

To secure their position as an industrial center, technology leader and hotspot for green hydrogen, the three countries need a targeted action plan. The national hydrogen councils of Germany, the Netherlands and Belgium therefore signed a declaration of intent in May 2024. They want to work closely together on common issues and thus advance the hydrogen economy in these countries.

Hydrogen production in Germany faces major hurdles

What should the new EU Parliament and the Commission actually do?

Closing the cost gap: The results of the European Hydrogen Bank’s first auction show that it is unlikely that Europe’s most important financing program for hydrogen will support production facilities in Germany, the Netherlands and Belgium. The cost gap between hydrogen production costs and the market price is too large.

A comprehensive pan-European hydrogen network must therefore be established to enable access to cheaper hydrogen from northern and southern Europe. At the same time, Germany, the Netherlands and Belgium need a targeted plan for the transition to green hydrogen. The cost gap must be closed by reducing the initial production costs and providing targeted support for the consumer industries. For this, we need intelligent financing options.

Improving the regulatory framework: The European regulatory environment makes a rapid market ramp-up for hydrogen more difficult. Restrictive regulations such as the conditions for the production of green hydrogen limit possible solutions. Complex regulations for state aid, scattered financing mechanisms and a lack of uniform certification procedures for green hydrogen are hindering the rapid development of the hydrogen economy in this three-country region.

Realistic scenarios for industrial centers

The regulatory framework must allow significantly more flexibility. This is the only way that Germany, Belgium and the Netherlands can play their part in ensuring that Europe becomes climate-neutral while maintaining the leading position of its industry.

Europe must do everything in its power to promote the introduction of green hydrogen. We need realistic scenarios for the regions that need it the most and help make the transition to clean hydrogen a success. Specific and flexible transitional arrangements for the promotion of clean hydrogen in Germany, the Netherlands and Belgium are key to securing Europe’s industrial and technological leadership worldwide.

Now is the time to act!

Katherina Reiche is Chairwoman of the German government’s National Hydrogen Council (NWR).

Marcel Galjee is Chairman of NLHydrogen.

Tom Hautekiet is Chairman of the Belgian Hydrogen Council (BHC).

  • Grüner Wasserstoff

Europe.Table Editorial Team

EUROPE.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    After almost seven years in exile in Belgium, Carles Puigdemont from the separatist Junts party wants to return to Spain. This is a risky move, as the separatist leader faces arrest if he enters the country. Puigdemont was elected regional president of Catalonia in 2016. He initiated a referendum and then proclaimed independence from Spain. He was later deposed by the Senate and then sentenced to many years in prison for “sedition”. At the time, he had avoided arrest by fleeing to Central Europe.

    But Puigdemont’s return is calculated. It coincides with the day on which the socialist Salvador Illa is to be elected regional president in the regional parliament. With the votes of another separatist party called ERC. This is part of the political deal that saw the socialist Pedro Sánchez become Prime Minister again. In return, Sánchez promised amnesty for leaders of the separatist movement. However, a decision by the Supreme Court put a spanner in the works and dashed the hopes of Puigdemont and other supporters for impunity.

    The exciting question now is: will Puigdemont be arrested? If so, the ERC could refrain from electing Illa. There is a lot at stake: Sánchez, who wants to end the era of separatist regional presidents in Catalonia by electing Illa, had garnished the deal with the promise to give the region the right to collect taxes independently. He is therefore prepared to relinquish the financial sovereignty of the central state. However, the controversial project could fail today, just like Illa.

    No matter where you are watching the political spectacle from – I hope you get through the day safely!

    Your
    Isabel Cuesta Camacho
    Image of Isabel  Cuesta Camacho

    Feature

    Italy: What Meloni wants to achieve with the constitutional reform

    As soon as the EU Commission’s report on the rule of law was published at the end of July, the first fake news stories started doing the rounds: Brussels rejected Italy’s constitutional reform, among other things. “The report revives all the fears that we have repeatedly expressed about the negative effects of the direct election of the head of government”, writes Dario Parrini, senator of the Partito Democratico, on his Facebook page, for example.

    The constitutional reform, Prime Minister Giorgia Meloni’s major project, is only lightly touched on in the Commission’s report: Some interest groups have expressed concerns about the proposed changes to the current system of institutional power-sharing, it says. Some doubt that these would lead to more stability.

    Direct elections would be a first in the EU

    It is also stated as a fact: With this reform, it would no longer be possible for the President of the Republic to form alternative majorities. He would also no longer be able to appoint experts as heads of government. This sums up in a nutshell what Meloni is all about: with the “mother of all reforms”, as she calls her plan, Italy’s prime ministers are to be elected directly by the people in the future. A first in the European Union.

    In Italy, the two chambers of parliament are elected every five years at the latest. The President of the Republic then appoints a person of his choice to form the government and appoints the ministers in consultation with this person. The opposition sees the planned constitutional amendment as a definitive authoritarian turn – initiated by Giorgia Meloni, the leader of the right-wing nationalist Fratelli d’Italia, a successor organization to the MSI, in which the henchmen of dictator Mussolini were active after the Second World War.

    Majority bonus off the table

    The direct election of the head of government would severely restrict the power of the president – who is considered by many to be the guarantor of the constitution, a political anchor and a reliable figure. This may have something to do with the current incumbent: Sergio Mattarella has been steering every political chaos into reasonably orderly channels for nine years. Almost 60 percent of Italians trust Mattarella. Giorgia Meloni is in second place in the vote of confidence with 35%.

    Some particularly controversial points from Meloni’s original text have already been removed, such as a majority bonus that would have automatically secured the winner at least 55% of the seats in both chambers of parliament. This figure at least is now off the table, but the possibility of run-off elections is now being discussed. A new feature of the current text is a limit of two terms in office.

    Are all plans practicable?

    The aim of Meloni’s reform is to make Italy’s governments more stable and stop the constant changes. And the most important thing: The person leading the government should have been clearly chosen by the people for precisely this task. These approaches are certainly justified. Meloni’s government is number 68 in the past 75 years. The average term of office for Italian governments is 18 months.

    Meloni is also the first Italian head of government since Berlusconi to explicitly apply for – and win – the post of prime minister during the election campaign. Her predecessors Mario Monti, Enrico Letta, Matteo Renzi, Paolo Gentiloni, Giuseppe Conte and Mario Draghi all got the job without having applied to the people for this office beforehand.

    In the event of a government crisis, the President would only be able to hand over the reins of government to someone else once per parliamentary term. This other person must be an elected member of parliament from the majority alliance of the originally elected prime minister. They must adhere to the prime minister’s program. This is where the question of practicality arises.

    Referendum could decide on reform

    However, it is not certain whether the constitution will be amended at all. In June, the current draft passed the first hurdle and was approved by the Senate. A constitutional amendment must pass through each of the two chambers of parliament twice and ultimately be approved by a two-thirds majority. If these figures do not materialize – which is likely – the people will have to be asked. Such a referendum could be held in spring 2025, halfway through the current legislature.

    A delicate point. Because approval for Meloni’s constitutional reform is not particularly high. In a survey conducted at the end of June, only 29% of respondents said they were in favor of electing the prime minister directly in the future. In 2016, Prime Minister Matteo Renzi, then still the shining light of the Partito Democratico, fell over his plans to reform the constitution. He also wanted to strengthen the office of prime minister.

    With a new electoral law, the party alliance that wins more than 40 percent in an election or a subsequent run-off election would automatically be awarded the majority of parliamentary seats, according to the plans of the left at the time. “Renzi wants to make himself a dictator inconspicuously“, said opponents of the plan at the time. The referendum failed and Renzi resigned. Meloni has already announced that he will not do so if her referendum also fails.

    Translation missing.Translation missing.

    News

    Traffic and buildings: Why the German government is getting sued again

    Environmental Action Germany (DUH) has filed another climate lawsuit against the German government at the Berlin-Brandenburg Higher Administrative Court – this time based on EU regulations and concerning emissions from the transport, buildings and land use sectors. Citing the EU Effort Sharing Regulation and the LULUCF Regulation, the organization requests in its statement of claim that the court should oblige the German government to submit a plan with “additional actions” that are sufficient to reduce these emissions in accordance with EU regulations. DUH also calls for “immediate measures such as a speed limit, a refurbishment campaign for public buildings and a massive reduction in forest logging.”

    All EU member states are required to jointly reduce their emissions in the so-called ESR sectors of transport, buildings, small industry, waste, and agriculture by 40 percent by 2030 compared to the 2005 level. Germany’s contribution is to halve its emissions. If Germany remains on its current course, it will “miss the target by a landslide,” according to DUH, “particularly due to the massively excessive emissions in the transport and buildings sectors.” DUH criticizes the fact that no other EU member state is doing so poorly. In its latest greenhouse gas projection report, the German Environment Agency estimates the extent to which the target will be missed by 2030 at 126 million tons of CO2 equivalents.

    Germany faces billions in fines

    If Germany fails to meet the ESR targets, it must purchase carbon credits from other EU member states by 2030 to compensate. According to the DUH, this could mean payments “in the double-digit billion range.” In addition, EU emissions trading will also be introduced for the transport and building sectors from 2027 (ETS 2).

    In the land use sector (LULUCF), EU law obliges Germany to meet clear targets for the storage of carbon dioxide in ecosystems such as forests or peatlands. Here, too, DUH sees “insufficient corrective measures to date” and is taking legal action. The organization has currently filed several lawsuits at various levels against the German government in an attempt to force it to adopt a more ambitious climate policy. Legal action has been filed before the European Court of Human Rights and the Federal Constitutional Court. ae

    • Building sector
    • Climate & Environment
    • Climate complaints
    • EU climate policy
    • EU-Klimapolitik
    • Landwirtschaft

    CSRD: Commission publishes FAQ for companies

    The EU Commission wants to support companies in implementing the Sustainability Reporting Directive (CSRD). It has therefore published a compilation of frequently asked questions (FAQs). Finance Commissioner Mairead McGuinness explained that the clarifications are intended to reduce the need for companies to seek external advice or legal counsel.

    In addition to an overview of the sustainability reporting requirements, the document contains answers from the Commission to frequently asked questions on the following topics:

    • on the sustainability information to be reported under the Accounting Directive,
    • on ensuring sustainability reporting,
    • on requirements for companies in third countries,
    • and on connection with the EU Disclosure Regulation (SFDR).

    Questions on the scope of application, deadlines and exceptions are answered for each topic, among other things. For example, when companies are allowed to use estimates instead of collecting information about the value chain from suppliers or partners. According to the Commission, questions from companies were taken into account in the compilation.

    The CSRD came into force in January 2023. The first group of companies must start reporting for the 2024 financial year in 2025. leo

    • Nachhaltigkeitsberichterstattung

    Mercosur: Why new appointments make diplomats optimistic

    European Union and South American negotiators will meet on Sept. 4-6 in Brasilia in the first in-person talks since April, raising hopes an EU-Mercosur trade deal can be concluded this year, diplomats said. In the works for two decades, an agreement has been delayed by European concerns over environmental safeguards and complaints by the Mercosur trade bloc that those questions are motivated by protectionism.

    “We are traveling to Brasilia for an in-person round of negotiations 4-6 September,” a European diplomat said. “The end-of-year timetable for conclusion is realistic,” he said. Brazil and Uruguay both confirmed the dates of the meeting. Uruguay’s foreign ministry said that the negotiating process “continues firmly” and that technical work has carried on “uninterrupted” between both sides.

    “There is interest from Mercosur in closing this agreement,” a Uruguayan foreign ministry spokesperson told Reuters on Wednesday. Foreign ministry representatives in Argentina and Paraguay did not immediately respond to Reuters’ request for comment.

    The talks suffered a blow in March when French President Emmanuel Macron called it a “very bad deal” on a visit to Brazil, voicing the opposition of French farmers. Negotiations were put on hold until after the EU’s parliamentary elections in June.

    Many conflicts not yet resolved

    Diplomats said the issues on the table remain the same, including European protection of food product names and Brazilian opposition to an EU anti-deforestation law due to go into effect next year that could affects its exports. French, German and Belgian farmers have protested against competition from cheaper South American imports. EU Commission President Ursula von der Leyen and Brazilian President Luiz Inacio Lula da Silva had committed themselves to concluding the agreement by the end of the year.

    At this stage, the EU is the main driver of the fresh push to finish the deal, which will open up markets for European companies, said international relations scholar Ignacio Bartesaghi at Uruguay’s Catholic University.

    Bartesaghi also said “Brazil wants to give a sense of continuity to the negotiations” due to fears that Argentina’s President Javier Milei would pull out, though his government has supported the talks since taking office. rtr

    • Mercosur

    Must-Reads

    Opinion

    Strong together in Europe: green hydrogen for climate and industry

    By Katherina Reiche, Marcel Galjee, Tom Hautekiet
    Tom Hautekiet, Katherina Reiche and Marcel Galjee advise the governments in Belgium, Germany and the Netherlands on the development of the hydrogen economy.

    The European Union is facing an immense challenge: it must achieve its ambitious climate targets and at the same time strengthen the competitiveness of its industry and technologies. We can only achieve these goals with the massive use of green hydrogen. But the necessary framework conditions are still lacking.

    Decisive political decisions are therefore needed now. For Germany, the Netherlands and Belgium in particular, the right steps must be taken urgently to meet the high demand and ensure a sufficient and affordable supply of green hydrogen.

    Germany, the Netherlands and Belgium together form an important economic region in the heart of Europe. It accounts for 30 percent of European industrial production and 40 percent of hydrogen consumption. Its industries such as steel, chemicals, process heat, electricity and transportation are expected to be the main consumers of green hydrogen.

    Action plan for Europe’s import hub

    With the North Sea as a center for green hydrogen production, a dense gas pipeline network and globally important ports, these countries are ideally positioned to become Europe’s import hub for green hydrogen. Despite these opportunities, the development of a market for liquid green hydrogen remains a major challenge.

    To secure their position as an industrial center, technology leader and hotspot for green hydrogen, the three countries need a targeted action plan. The national hydrogen councils of Germany, the Netherlands and Belgium therefore signed a declaration of intent in May 2024. They want to work closely together on common issues and thus advance the hydrogen economy in these countries.

    Hydrogen production in Germany faces major hurdles

    What should the new EU Parliament and the Commission actually do?

    Closing the cost gap: The results of the European Hydrogen Bank’s first auction show that it is unlikely that Europe’s most important financing program for hydrogen will support production facilities in Germany, the Netherlands and Belgium. The cost gap between hydrogen production costs and the market price is too large.

    A comprehensive pan-European hydrogen network must therefore be established to enable access to cheaper hydrogen from northern and southern Europe. At the same time, Germany, the Netherlands and Belgium need a targeted plan for the transition to green hydrogen. The cost gap must be closed by reducing the initial production costs and providing targeted support for the consumer industries. For this, we need intelligent financing options.

    Improving the regulatory framework: The European regulatory environment makes a rapid market ramp-up for hydrogen more difficult. Restrictive regulations such as the conditions for the production of green hydrogen limit possible solutions. Complex regulations for state aid, scattered financing mechanisms and a lack of uniform certification procedures for green hydrogen are hindering the rapid development of the hydrogen economy in this three-country region.

    Realistic scenarios for industrial centers

    The regulatory framework must allow significantly more flexibility. This is the only way that Germany, Belgium and the Netherlands can play their part in ensuring that Europe becomes climate-neutral while maintaining the leading position of its industry.

    Europe must do everything in its power to promote the introduction of green hydrogen. We need realistic scenarios for the regions that need it the most and help make the transition to clean hydrogen a success. Specific and flexible transitional arrangements for the promotion of clean hydrogen in Germany, the Netherlands and Belgium are key to securing Europe’s industrial and technological leadership worldwide.

    Now is the time to act!

    Katherina Reiche is Chairwoman of the German government’s National Hydrogen Council (NWR).

    Marcel Galjee is Chairman of NLHydrogen.

    Tom Hautekiet is Chairman of the Belgian Hydrogen Council (BHC).

    • Grüner Wasserstoff

    Europe.Table Editorial Team

    EUROPE.TABLE EDITORIAL OFFICE

    Licenses:

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